If the sale price doesn't cover your mortgage arrears the lender can take steps to recover what you owe. If the lender sells your debt to another company, you owe them the money instead.

If you took out mortgage indemnity insurance when you arranged your mortgage, the insurance protects the lender not you. If the insurance company makes a payout to your mortgage lender to cover a shortfall, they will probably ask you to repay them.

Mortgage payments after repossession

You don't have to pay any more instalments on your mortgage after a court decides that your home can be repossessed.

You are charged interest on what you owe until your home is sold.

Try to make an arrangement with your lender to make some payments towards your debt. Your total debt will increase if you don't make payments.

Responsibility for repairs and maintenance

After repossession, your lender must take proper care of the property until it is sold.

Your lender must:

deal with essential repairs such as leaking pipes

carry out basic maintenance work, such as mowing the lawn

Your lender can charge you for the cost of repair and maintenance work. This is usually added to what you owe.

Selling your home before repossession

You can't sell the property after the court has made a repossession order.

If you want to sell your home, contact your lender before you're taken to court. Ask for time to sell your home yourself.

You might be able to sell your home for a better price than your lender can.

You must get the lender's permission to sell if you are in negative equity.

If your lender refuses permission and you have a genuine prospect of selling the property, ask the court to give you time to do this. The courts may be willing to make an order allowing you time to sell the property yourself.

Contact a solicitor for further advice about selling the property yourself.